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The Dun and Bradstreet Business Optimism Index for Qatar, measuring the third quarter of 2008, reveals a positive business outlook amongst the Qatari business community as reflected in expectations of increased sales and profit levels in the next quarter and significant business expansion plans.
Commenting on these findings, Zahid Khan, al khaliji Executive, Treasury & Debt Capital Markets commented, "The results of this first ever survey allows us to validate at the 'micro' or business unit level what Qatar's economic data has been saying at the 'macro' level ...the Qatar economy is booming and, it shows in the optimism of Qatar businesses The information surprises at the "micro" level that may not be readily apparent at the "macro" level, also brings home one of the key values of a survey of this kind."
While the report was broadly positive, the twin pressures of high inflation and a shortage of skilled manpower also emerged as key business issues for the next quarter and these look set to persist with 60% of respondents forecasting higher prices for their products and services next year.
"The Business Optimism Index survey points towards definite signs that the inflationary pressures in the economy are going to persist, with more than 60% of business units expecting a rise in their selling prices in the next quarter,"
says Ms. Rajni Thakur, Senior Economist, Dun and Bradstreet.
"It is interesting that concerns about the current high inflation rate vary among the sectors. Indeed, the finance and construction sector seem to be impacted more by the lack of skilled labor supply," adds Shashank Srivastava, Director of Strategy and Planning at the Qatar Financial Centre Authority.
Commenting on the expectations of the finance sector, Srivastava states, "Our primary responsibility is to attract new expertise and capacity from leading financial service institutions and professional services providers from around the world to support business investment and development in Qatar." Srivastava further adds, "In this context it is important to note that the QFC Authority is planning to establish the Qatar Financial Training Institute (QFTI), aimed at attracting top quality training and certification providers in order to facilitate the creation of a world-class financial services labor force in Qatar and the region. This initiative will respond positively to the increasing demand for a skilled workforce from the financial sector."
Business optimism indices are commonly used to better identify and understand the growth expectations of the business community and its response to current developments within an economy. Issued quarterly, the Business Optimism Index for Qatar will be based on an extensive survey conducted amongst the Qatari business community and will be one of the most effective ways to keep track of where businesses think the Qatari economy is moving. The next Business Optimism Index on Qatar will be released at the end of September 2008.
Posted by Medilyn Manibo, Assistant News Editor
